1. BAE Lean Intro 1 © The Delos Partnership 2005 Lean and Agile Philosophy How to eliminate waste in pursuit of Quick response

2. BAE Lean Intro 2 © The Delos Partnership 2005 Today’s Value ? Time is money... Time is waste...

3. © The Delos Partnership 2005 Lean?: waste removal

4. BAE Lean Intro 4 © The Delos Partnership 2005 Before After Assembly time: -47% W.I.P.: -99% Lead time: -99% Floor space: -40% Lean example: oil cooler cell

5. BAE Lean Intro 5 © The Delos Partnership 2005 Lean - application Production process Supplying process Invoicing process

6. BAE Lean Intro 6 © The Delos Partnership 2005 Lean summary The use of the minimum resources, i.e. manpower, machinery, materials, space and time, and cash to manufacture and supply the product

7. BAE Lean Intro 7 © The Delos Partnership 2005 Waste Variability Inflexibility (Volume and Mix) Seeing the potential…

8. BAE Lean Intro 8 © The Delos Partnership 2005 Waste Variability Inflexibility  Value Added  Reliability  Responsiveness (Volume and Mix) Seeing the potential…

9. © The Delos Partnership 2005 Agility Martin Christopher Cranfield 2003 Postponement Bottleneck Management Reduce NVA Time Streamlined Processes Synchronous Supply Reduce In-bound Lead times Velocity Agility Visibility Internal Integration Close to Customers Collaborative Planning Access to Real Demand Process Management Shared Information Close to Suppliers Event Management Collaborative Planning Level 1 Principles Level 2 Programmes Level 3 Actions Strategic Sourcing Simplification Reduce Batch Sizes

10. BAE Lean Intro 10 © The Delos Partnership 2005 The ability to respond to changes from customers and markets Agility summary

11. BAE Lean Intro 11 © The Delos Partnership 2005 Focus or initiatives ? M a k e / B u y ? G l o b a l S o u r c e Demand Clarity NPI P r o d u c t R a n g e L e a n M R P C o s t D o w n Q u i c k R e s p o n s e Value Stream Mapping 6 ? L e a d t i m e r ed u c t i o n Agile Plan and Schedule S t o c k L o c a t i o n TPM V a r i e t y F u n n e l D F M OEE 5 S

12. BAE Lean Intro 12 © The Delos Partnership 2005 Focus on integration Lean/AgileSixSigma Sales and Ops Planning - SMED/OEE.ERP WTL MPS/MRP/CRP Kanban ValueStreamMappingStatisticalProcessControl DMAIC ControlCharts

13. BAE Lean Intro 13 © The Delos Partnership 2005 Glossary ERP = Enterprise Resource Planning SMED = Single minute Exchange of Die MPS = Master Production Schedule MRP = Material Requirements Planning CRP = Capacity Requirements Planning DMAIC = Define, Measure, Analyze, Improve Control Kanban = Signal for what to make next Work To List = Schedule for Production

14. BAE Lean Intro 14 © The Delos Partnership 2005 Workshop What opportunities are there for elimination of waste across the BAE Salmesbury site to speed up the process of carrying out the assembly of Jet Fighters.